Instead, the Swiss company said it is seeking redress in the Street’s court system of arbitration, operated by its self-regulatory agency, digging in against Nasdaq and opting out of the exchange’s “inadequate and insufficient” plan to compensate traders, brokers and others for losses incurred by the Facebook IPO last May.

Arbitration proceedings are typically conducted behind closed doors, but can be wrapped up faster than traditional litigation, and all the parties are supposed to abide by the final decision. On the final point, the loser can move to vacate the decision in the civil courts, especially if there is a substantial amount on the line. Or the parties can settle.

An arbitrated fight is not surprising, since UBS would have had to oversubscribe to Nasdaq’s total offer by nearly six-fold — to co-opt hot IPO speak — to recoup the $356 million it says it lost on the Facebook IPO. The loss came after UBS’s automated trading system continuously bought Facebook shares while Nasdaq trade confirmations failed to reach the trading desk to turn off the buying machine.

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.